/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, March 13, 2020 /CNW/ - Firm Capital American
Realty Partners Trust (the "Trust"), (TSXV: FCA.U), (TSXV:
FCA.UN) is pleased to announce that it has closed its previously
announced public offering (the "Offering") of 1,590,000
units ("Units"). 505,775 Units were acquired at a price of
US$8.20 per Unit for United States dollar gross proceeds of
US$4,147,355 and 1,084,225 Units were
acquired at a price of Cdn$10.90 per
Unit for Canadian dollar gross proceeds of Cdn$11,818,052.50. Each Unit consists of one
trust unit (a "Trust Unit") and one trust unit purchase
warrant (a "Warrant"). Each Warrant is exercisable to
acquire one Trust Unit (a "Warrant Unit") for an exercise
price of US$10.75 per Warrant Unit
for a period of 24 months following the closing date of the
Offering (the "Warrant Expiry Date"), subject to
acceleration of the Warrant Expiry Date in the event that the
volume weighted average trading price of the Trust Units on the
principal stock exchange on which they are traded is greater than
US$12.75 per Trust Unit for a period
of 10 consecutive trading days at any time after the closing of the
Offering and upon the Trust giving 30 days' notice of acceleration,
at the Trust's sole discretion.
The Offering was made through a syndicate of underwriters led by
Canaccord Genuity Corp., CIBC World Markets Inc., and TD Securities
Inc. and including Echelon Wealth Partners Inc., Industrial
Alliance Securities Inc., National Bank Financial Inc., Raymond
James Ltd., Scotia Capital Inc., Desjardins Securities Inc.,
Laurentian Bank Securities Inc. and Wellington-Altus Private Wealth
Inc. (collectively, the "Underwriters").
The Trust granted the Underwriters an option (the
"Over-Allotment Option") to cover over-allotments and for
market stabilization purposes, exercisable at any time up to 30
days subsequent to the closing of the Offering, to increase the
size of the Offering by up to 15% in Offered Units (and/or the
components thereof) on the same terms and conditions of the
Offering, exercisable in whole or in part and from time to
time.
The Trust intends to use the net proceeds of the Offering to
fund prospective acquisitions of income producing multi-family
residential properties in the U.S., to fund prospective investments
in mortgage debt on real estate properties in the U.S. and for
working capital and for general trust purposes.
The Trust Units issuable pursuant to the Offering including
those issuable on the due exercise of the Warrants have been
approved for listing on the TSX Venture Exchange subject to
satisfaction of typical conditions imposed by the TSX Venture
Exchange. The Trust has applied to list the Warrants on the TSX
Venture Exchange. A further press release will be issued if and
when such application is approved.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. The securities
being offered have not been, and will not be, registered under the
United States Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United States unless an exemption from
registration is available. This news release is for information
purposes only and does not constitute an offer to sell or a
solicitation of an offer to buy any securities of the Trust in any
jurisdiction.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS TRUST
Firm Capital American Realty Partners Trust is a U.S. focused
real estate investment entity that pursues real estate and debt
investments through the following platforms:
- Income Producing Real Estate Investments: Acquiring
income producing real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Trust or in joint-venture partnership
with local industry expert partners who retain property management
responsibilities; and
- Mortgage Debt Investments: Real estate debt and
equity lending platform in major cities across the United States, focused on providing all
forms of bridge mortgage loans and joint venture capital.
FORWARD LOOKING INFORMATION
Certain information in this news release constitutes
forward-looking statements under applicable securities law. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expect", "intend" and
similar expressions. Forward-looking statements in this press
release include statements relating to: the Offering and the use of
proceeds thereof and the listing of the Warrants. Forward-looking
statements necessarily involve known and unknown risks, including,
without limitation, risks associated with general economic
conditions; adverse factors affecting the U.S. real estate market
generally or those specific markets in which the Trust holds
properties; volatility of real estate prices; inability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favourable terms;
industry and government regulation; changes in legislation, income
tax and regulatory matters; the ability of the Trust to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks, including those described in the
Trust's public disclosure documents on SEDAR at www.sedar.com.
Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. Additional information about the Trust is
available at www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital American Realty Partners Trust